Singapore's PMI grows

Singapore's PMI grows

SINGAPORE: A key index released on Wednesday showed Singapore's key manufacturing sector grew at a faster pace in December as orders and production increased.

The forward-looking Purchasing Managers' Index (PMI) was at 51.8 points in December, up 1.5 points from November, the Singapore Institute of Purchasing and Materials Management said.

A reading above 50 points shows an expanding economy. Singapore's manufacturing sector is a key growth driver, accounting for a quarter of gross domestic product.

"The increase of the overall PMI was attributed to an increase in new orders and new export orders, higher production output as well as higher employment levels," the institute said in a statement.

"The overall stocks of finished goods, imports and input prices also posted higher readings."

In the all-important electronics sector, the index was unchanged from November at 51.3 points.

Analysts said the expansion of the manufacturing sector in December would support preliminary estimates by the trade ministry that Singapore's economy grew 8.1 percent in 2004, its fastest pace in four years.-- AFP